Azincourt Energy Closes C$6.4 Million First Tranche of Its Non-Brokered Private Placement
September 29 2021 - 8:00AM
AZINCOURT ENERGY CORP. (“Azincourt” or the
“Company”) (TSX.V: AAZ, OTCQB: AZURF, FSE: A0U2) is pleased to
announce the closing of the first tranche of its non-brokered
private placement (the “Offering”). Under the first tranche, the
Company raised C$6,405,000 from the sale of the following:
- 60,805,988
units of the Company (the “Units”) at a price of C$0.07 per
Unit;
- 10,933,459
flow-through units of the Company (the “FT Units”) at a price of
C$0.075 per FT Unit; and
- 14,285,714 FT
Units sold to charitable buyers (the “Charity FT Units”) at a price
of C$0.093 per Charity FT Unit.
The final tranche of the C$7.6M total Offering
is fully-subscribed, and the Company anticipates closing taking
place in the coming weeks.
Red Cloud Securities Inc. is acting as a finder
in connection with the Offering.
Each Unit consists of one common share of the
Company (each, a “Unit Share”) and one common share purchase
warrant (each, a “Warrant”). Each FT Unit and Charity FT Unit
consists of one common share of the Company to be issued as a
“flow-through share” within the meaning of the Income Tax Act
(Canada) (each, a “FT Share”) and one Warrant. Each Warrant
entitles the holder thereof to purchase one common share of the
Company (each, a “Warrant Share”) at a price of C$0.10 at any time
before September 29, 2024.
The gross proceeds from the issuance of the FT
Shares will be used for “Canadian Exploration Expenses” (within the
meaning of the Income Tax Act (Canada)) (the “Qualifying
Expenditures”), which will be renounced with an effective date no
later than December 31, 2021 to the purchasers of the FT Shares in
an aggregate amount not less than the gross proceeds raised from
the issue of the FT Shares. If the Qualifying Expenditures are
reduced by the Canada Revenue Agency, the Company will indemnify
each subscriber of FT Shares for any additional taxes payable by
such subscriber as a result of the Company’s failure to renounce
the Qualifying Expenditures. It is expected that expenditures will
largely be focused on the upcoming 30 to 35-hole, 7,000 m drill
program at the East Preston Uranium Project located in the western
Athabasca Basin in Saskatchewan, Canada.
The net proceeds from the sale of Units will be
used primarily for the continued development of the Company’s East
Preston uranium project, for working capital, and general corporate
purposes.
In connection with the closing of the first
tranche of the Offering, the Company paid finder’s fees totaling
C$422,045, advisory fees totaling C$69,680 and issued a total of
6,593,437 finder’s warrants of the Company (each, a “Finder’s
Warrant”). Each Finder’s Warrant is exercisable into one common
share of the Company at a price of C$0.07 at any time before
September 30, 2024. The Unit Shares, FT Shares, Warrant Shares and
any common shares of the Company that are issuable from any
Finder’s Warrants will be subject to a hold period ending on
January 30, 2022 in accordance with applicable securities laws.
The securities offered have not been, and will
not be, registered under the United States Securities Act of 1933,
as amended (the "U.S. Securities Act") or any U.S. state securities
laws, and may not be offered or sold in the United States or to, or
for the account or benefit of, United States persons absent
registration or an applicable exemption from the registration
requirements of the U.S. Securities Act and applicable U.S. state
securities laws. This press release does not constitute an offer to
sell or the solicitation of an offer to buy securities in the
United States, nor in any other jurisdiction.
About Azincourt Energy Corp.
Azincourt Energy is a Canadian-based resource
company specializing in the strategic acquisition, exploration, and
development of alternative energy/fuel projects, including uranium,
lithium, and other critical clean energy elements. The Company is
currently active at its majority controlled joint venture East
Preston uranium project in the Athabasca Basin, Saskatchewan,
Canada, and the Escalera Group uranium-lithium project located on
the Picotani Plateau in southeastern Peru.
ON BEHALF OF THE BOARD OF AZINCOURT
ENERGY CORP.
“Alex Klenman”Alex Klenman, President & CEO
Neither the TSX Venture Exchange nor its
regulation services provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
This press release includes “forward-looking
statements”, including forecasts, estimates, expectations and
objectives for future operations that are subject to a number of
assumptions, risks and uncertainties, many of which are beyond the
control of Azincourt. Investors are cautioned that any such
statements are not guarantees of future performance and that actual
results or developments may differ materially from those projected
in the forward-looking statements. Such forward-looking information
represents management’s best judgment based on information
currently available. No forward-looking statement can be
guaranteed, and actual future results may vary materially.
For further information please
contact:
Alex Klenman, President & CEOTel:
604-638-8063info@azincourtenergy.com
Azincourt Energy Corp.1430 – 800 West Pender
StreetVancouver, BC V6C 2V6www.azincourtenergy.com
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